IBA letter to member banks regarding DA to retirees of banks from August 2022 to January 2023

[Sadashiv Kamath]

A few days ago,  Mr P Mohan of this group had shared the following link regarding DA payable to  Bank  retirees wef  Aug 2022 to Jan 2023 issued by IBA to the member banks. As I could not understand the last two paragraphs of the said communication, I request Sri  P Mohan to kindly throw light in this matter.

IBA: Indian Banks' Association

     https://www.iba.org.in/circulars/dearness-relief-payable-to-pensioners-for-the-period-august-2022-to-january-2023_1355.html.

The  last para of this letter reads "Pending amendments to Pension Regulations, Banks may pay on ad-hoc basis the dearness Relief payable to pensioners for the period August 2022 to January 2023 as per Annexure."

Does this mean that amendment to the Pension Regulations is under consideration? Other learned members of this group may also kindly contribute.

[mohan p]

Dear Mr Sadashiv Kamath,

At the outset let me clear  that, BEPR,1995 is subject to amendment as and when it become necessary.

01.Bank Employees Pension Regulations,1995 clearly define on payment of DR to pensioners as per Apendix II of the same as follows:

"37. Dearness Relief.
(1) Dearness relief shall be granted on basic pension or family pension or invalid pension or on
compassionate allowance in accordance with the rates specified in Appendix II."

The above referred Appendix II describe in detail on rate at which DR to be paid to different categories of pensioners.( presently to seven segments)

02.While new  BPS/Joint Note is signed another set of pensioners may  come into picture with different CPI merger points (last time it was CPI 6352) with a new applicable DR rate.

03.Same has to be incorporated/amended  in BEPR,1995 with notification of the same in Govt. Gazette.

04.So the relevant wordings in DR circular of IBA refer to such aspect.

What we may observe is that,most of the Banks in general may/could  not  complete the process of amendment/notification in Gazette in timely manner since it involves approval of their Board etc.

05.To cite a latest example related to subject, is the improvement in Family Pension at uniform rate of 30% implemented in 2020.Still we may find that  the above clause is yet be incorporated in BEPR,1995,of at least  few  banks. 

06.The other  connected point is:At least few retirees may have a wishful thinking that, once BEPR,1995 is amended incorporating Updation of Pension,as and when wage Revision  of employees are taking place,our major issue would have been solved.

I do not subscribe to that point.In RBI pension Regulation too there was no such clause and still they secured it in 2019, by joint and consistent struggle.

So once same is granted,then also amendment can be carried out.Need not necessarily the other way only!

On Wed, 3 Aug, 2022, 1:34 pm mohan p, <moha...@gmail.com> wrote:

Dear Mr Sadashiv Kamath,

At the outset let me clear  that, BEPR,1995 is subject to amendment as and when it become necessary.

01.Bank Employees Pension Regulations,1995 clearly define on payment of DR to pensioners as per Apendix II of the same as follows:

"37. Dearness Relief.
(1) Dearness relief shall be granted on basic pension or family pension or invalid pension or on
compassionate allowance in accordance with the rates specified in Appendix II."

The above referred Appendix II describe in detail on rate at which DR to be paid to different categories of pensioners.( presently to seven segments)

02.While new  BPS/Joint Note is signed another set of pensioners may  come into picture with different CPI merger points (last time it was CPI 6352) with a new applicable DR rate.

03.Same has to be incorporated/amended  in BEPR,1995 with notification of the same in Govt. Gazette.

04.So the relevant wordings in DR circular of IBA refer to such aspect.

What we may observe is that,most of the Banks in general may/could  not  complete the process of amendment/notification in Gazette in timely manner since it involves approval of their Board etc.

05.To cite a latest example related to subject, is the improvement in Family Pension at uniform rate of 30% implemented in 2020.Still we may find that  the above clause is yet be incorporated in BEPR,1995,of at least  few  banks. 

06.The other  connected point is:At least few retirees may have a wishful thinking that, once BEPR,1995 is amended incorporating Updation of Pension,as and when wage Revision  of employees are taking place,our major issue would have been solved.

I do not subscribe to that point.In RBI pension Regulation too there was no such clause and still they secured it in 2019, by joint and consistent struggle.

So once same is granted,then also amendment can be carried out.Need not necessarily the other way only!

[Sadashiv Kamath]

I Thank you profusely Mr. P. Mohan for your detailed reply.  You have as usual  given immediate reply and the same is very much appreciated.

_ Sadashiv

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